RATIONALE BEHIND THE IMPLEMENTATION OF CONTRIBUTORY PENSION SYSTEM – OBASANJO

FORMER PRESIDENT OLUSEGUN OBASANJO EXPLAINS THE INTRODUCTION OF CONTRIBUTORY PENSION DUE TO RETIREES’ PAINS

In a recent meeting with the Chief Executive Officer of the Pension Fund Operators Association of Nigeria (PenOp), former President Olusegun Obasanjo revealed that the challenges faced by retirees in collecting their monthly pensions were a significant factor that led to the introduction of pension reforms in 2003, giving rise to the Contributory Pension Scheme (CPS).

President Obasanjo expressed his concern at witnessing numerous pensioners, especially military personnel who had served the nation, standing in queues to collect their pensions during his first term in office. Motivated by this observation, the administration aimed to transform pension management and administration, making it more driven by the private sector and aligned with global best practices.

Reflecting on the growth of pension assets over the past two decades, Obasanjo expressed satisfaction with the positive impact of the reforms. He highlighted the unexpected speed at which pension assets grew, emphasizing the beneficial effects experienced thus far.

Philip Shimnom Clement; From the News Source: DailyTrust